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Fuel Crisis

National response on fuel security and fuel supply chain welcomed by peak bodies

Mar 31, 2026

PEAK bodies NSW Farmers’ and Road Freight NSW have welcomed the Federal Government’s action on fuel excise and national fuel security, with NSW Farmers’ saying the plan must deliver results.

The peak body has welcomed the national response on fuel security and fuel supply chain resilience, but says immediate, practical action is needed to fix regional distribution failures now impacting food and fibre production – with the latest data on Friday indicating at least 178 New South Wales service stations are out of diesel.

NSW Farmers’ president Xavier Martin said yesterday’s announcement of a National Fuel Security Plan and the shift to “keeping Australia moving” was only meaningful if it resulted in hoses in diesel tanks for farmers and communities that had been running on fumes for weeks.

“We welcome national co-ordination, but farmers can’t run tractors on a framework,” Mr Martin said.

“This is a crisis that requires urgent action, because farmers and truckies need a reliable diesel supply to produce food and fibre, then get it to consumers.

“Government needs to take action today to get that diesel to where it’s needed so this doesn’t become just another talkfest.”

Mr Martin said agriculture was a critical industry, and fuel distribution had to prioritise farmers and the food supply chain – not just in principle, but through sector-specific and region-specific action that removed persistent bottlenecks in the independent distribution network and put diesel in tanks.

“Farmers continue to report shortages and stress heading into this critical period, and ongoing distribution failures risk cascading impacts across livestock movements, feed, cropping programs and broader regional supply chains,” he said.

“After weeks of talking, it’s time for action. Australians need leadership that gets diesel where it’s needed – not more commentary about why it should be working.”

Mr Martin said the National Cabinet statement correctly recognised the need to protect critical services and plan for escalation, but stressed the farming sector needed real-time delivery now, clear triggers, and accountability to ensure the plan translated into outcomes on the ground.

“A plan is only as good as its execution,” Mr Martin said.

“What farmers need to hear next is simple: That country diesel tanks have been refilled, the tractors and trucks are moving again, the dysfunctional middlemen in the fuel industry have been dealt with, and supply stabilised.

“Food supply is a critical service, and if the farm sector does not have guaranteed prioritisation of access to diesel to produce and transport food, there will be considerably more impacts for all Australians.

“This crisis exposes Australia’s vulnerability to global shocks and reinforces the need for stronger domestic supplies – including adequate on shore reserves, domestic production, and policies that guarantee fuel and fertiliser for agriculture,” he said.

Road Freight NSW has welcomed the announcement by the Federal Government to halve the fuel excise and reduce the road-user charge to zero, following yesterday’s emergency National Cabinet meeting to address looming fuel supply shortages.

The halving of the fuel excise will commence from April 1 and run to June 30 and will reduce the cost of fuel by 26.3 cents per litre, or an estimated $19 saving on a 65-litre tank.

The Heavy Vehicle Road User Charge will also be reduced to zero for three months to help truckies continue their vital work across Australia.

The next scheduled increase in the Heavy Vehicle Road User Charge will also be deferred by six months.

RFNSW chief executive officer, Simon O’Hara, said the measures were a critical and timely step to ease pressure on Australia’s freight operators and help keep essential goods moving across the country.

“Truck operators are on the frontline of keeping Australia supplied, and right now they are under enormous pressure from rising fuel costs and uncertainty around supply,” Mr O’Hara said.

“Halving the fuel excise and reducing the road user charge to zero will provide immediate and meaningful relief to operators who simply cannot absorb these escalating costs.”

Mr O’Hara said RFNSW welcomed the introduction of a National Fuel Security Plan, developed in collaboration with states and territories, as an important step toward ensuring a coordinated and consistent national response.

“Australia’s freight industry depends on reliable, affordable fuel supply,” he said.

“A nationally co-ordinated approach is essential to maintaining confidence and ensuring that fuel gets where it is needed most – particularly for critical freight tasks.

“Keeping Australia moving must remain the priority, and that includes ensuring freight operators are supported to continue delivering for businesses, communities and households across NSW and beyond.”

Deputy Leader of the Opposition, Jane Hume, said cutting the fuel excise is positive news.

“That means that fuel will be 26 cents cheaper on every litre,” she said.

“Halving the fuel tax will take a little bit of pressure off the cost of living ahead of Easter.

“The Government also needs to work with the fuel companies to make sure fuel is getting to bowsers – cost is one thing, but petrol also needs to be available right across Australia.

“The reality is, the Government still doesn’t have a clear plan to get fuel to the servos with shortages,” she said.

The National Cabinet yesterday agreed to the National Fuel Security Plan to co-ordinate a consistent response across the Commonwealth, States and Territories.

The National Fuel Security Plan can be read HERE.

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